Forum Archive Index - January 2000

[David Iles <davidi@wave.co.nz>]

I attended the Tauranga presentation yesterday.

In summary. The company is very optimistic for the Hochstetter well and
Maui West area. Comparisons were made with the Bass Strait in Australia.

The well will take about a month to reach the deepest level where
hydrocarbons may be found. There are three levels where hydrocarbons may
be discovered with different estimated reserves at each. Oil deposits
have been found on the sea bed which is a promising sign.

Asked about the probability of a commercial discovery we were told that
the industry average is around 1 chance in 10 but for Hochstetter the
"feeling" was around 1 in 3.

Depending upon a discovery and proven reserves estimates for NZOG share
price on a NPV basis are from $3 to $200 on current oil prices.

All up I see little downside in NZOG over the next 4 - 6 weeks and
upside of maybe a price of around $1 prior to final results being known.

Disclosure: Hold NZOG


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